Kate's Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for $5. The company computes themanufacturing overhead rate on a quarterly basis based upon the planned number of units to be produced that quarter. The followingdata are from the projections of Kate's Kale Chips for the upcoming quarter:Projections24,000 bags26,000 bags$ 2.80$ 0.55$ 59,800$ 22,000SalesProductionVariable manufacturing cost per bagSales and distribution costs per bagTotal fixed manufacturing overheadFixed administrative overheadRequired:1. Compute the projected product cost per bag produced under full costing.2. Compute the projected product cost per bag under variable costing.(Round your answers to 2 decimal places.)1.Product cost under full costingper bag2.Product cost under variable costingper bag

1. Product cost under full costing = Variable manufacturing cost per bag + ( Total fixed…

Answered: Kate's Kale Chips produces a healthy…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A merchandising company sells a particular product that is estimated to have approximately 1,500 sales this year. The purchasing department estimates that it will cost approximately $200 to place an order for this product: $180 fixed and $20 variable. The total annual carrying cost for this product is $1,500. What is the product’s EOQ? A. 775 B. 19 C. 735 D. 20
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